What We Learned About Ukrproduct Group's (LON:UKR) CEO Compensation

This article will reflect on the compensation paid to Alexander Slipchuk who has served as CEO of Ukrproduct Group Limited (LON:UKR) since 2018. This analysis will also assess whether Ukrproduct Group pays its CEO appropriately, considering recent earnings growth and total shareholder returns.

See our latest analysis for Ukrproduct Group

How Does Total Compensation For Alexander Slipchuk Compare With Other Companies In The Industry?

According to our data, Ukrproduct Group Limited has a market capitalization of UK£2.1m, and paid its CEO total annual compensation worth UK£45k over the year to December 2019. This means that the compensation hasn't changed much from last year. It is worth noting that the CEO compensation consists entirely of the salary, worth UK£45k.

On comparing similar-sized companies in the industry with market capitalizations below UK£148m, we found that the median total CEO compensation was UK£281k. In other words, Ukrproduct Group pays its CEO lower than the industry median.

On an industry level, roughly 71% of total compensation represents salary and 29% is other remuneration. Speaking on a company level, Ukrproduct Group prefers to tread along a traditional path, disbursing all compensation through a salary. If salary is the major component in total compensation, it suggests that the CEO receives a higher fixed proportion of the total compensation, regardless of performance.

Ukrproduct Group Limited's Growth

Over the past three years, Ukrproduct Group Limited has seen its earnings per share (EPS) grow by 110% per year. Its revenue is up 25% over the last year.

Shareholders would be glad to know that the company has improved itself over the last few years. It's also good to see decent revenue growth in the last year, suggesting the business is healthy and growing. While we don't have analyst forecasts for the company, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.

Has Ukrproduct Group Limited Been A Good Investment?

Ukrproduct Group Limited has generated a total shareholder return of 7.5% over three years, so most shareholders wouldn't be too disappointed. But they probably wouldn't be so happy as to think the CEO should be paid more than is normal, for companies around this size.

In Summary...

Ukrproduct Group rewards its CEO solely through a salary, ignoring non-salary benefits completely. As we noted earlier, Ukrproduct Group pays its CEO lower than the norm for similar-sized companies belonging to the same industry. At the same time, EPS growth has been exceptional over the past three years. Shareholder returns, in comparison, have not been as impressive. We would wish for better returns (whether dividends or capital gains) but we do admire the solidEPS growth on show here. So it's fair to say Alexander has done quite well despite modest compensation and shareholders might not be averse to a raise.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 2 warning signs for Ukrproduct Group that you should be aware of before investing.

Important note: Ukrproduct Group is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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